The banker making the Maine real estate property loan used to scope out the listing and decide if the value was there for collateral, before independent appraisers took over the job for the place with the vault, teller lines.And in Maine, real estate brokers, agents, REALTORS used to ride shot gun with the appraiser to the property, bringing along comparable sales, competing listings like the subject listing under the bright value microscope. The real estate appraiser was not on the ME multiple listing service, the mls network that tracks what is for sale, pending, or already recently sold. Many times neither was the agent, broker especially in the rural areas of Maine. So information, accurate apples to apples property listings to size up the subject home, land, farm, waterfront property with a market approach was generated in home grown fashion.
The agent, real estate brokerhelped the appraiser build a case for what the property was worth. He or she was the logical guy or gal for the job as had been to the property, scoped it out many months ago and as it was marketed, shown, more and more about what makes it tick is revealed. The appraiser was having a glance, once over "date" for the half hour to 60 minutes being spent at the property before going back to his office and making the study, comparison from the observation tour. The degree of detail, accuracy of the agent, real estate broker's listing sheet, imagery helped the appraiser do his job. Like a lawyer in a court of law, the relationship with the judge, which the appraiser is, was a professional one but also you get to understand the working relationship function each has to do to make the system work.
Nowadays with appraisers on the fast paced move it out scout MLS real estate system, property pipeline, and with volume the key, a lot of ground is covered, quickly, with a standardization principle applied. Like cattle at the auction, looking for a bidder, the auctioneer has to size up the meat quickly, in so many colorful fastly articulated words to explain what the next bull heifer details the folks in the audience need to know to decide to buy or not. And for how much, how far they will go.
So when an appraiser is on a day mission, property maneuvers to swoop in to a rural Maine outpost to do five appraisal inspections, the chances something is missed is higher now. Sure the listing sheet is jammed packed with fields but even with 50 spaces to fill in to try to differentiate one property from another...mistakes are made. Areas missed, and comparison analogies can be flawed. Like a doctor with too many charts, not enough sleep and problems outside the hospital, on the home front.
Like the process too in row after row of used cars at an auction where they pretty much all look alike until noticing that a front fender is a little darker shade on that Chevy Impala meaning red flag comes up, accident in the past on that one.Many of the mls field details are pretty similiar from one residence to the next taking away room count and square footage. And the condition of the kitchen on this cape, that ranch is missing because the listing is promoting the property, hitting the marketing highlights to cause the phone to ring, emails to pour in, real estate office visits to happen.
So when a property appraisal comes in low in the 200 mile and hour world of real estate, bank loan competitive lending, and more and more hands off from the bank, broker and the appraiseron his own in the field as he like Santa hits many homes during each day, cut of communication happens. Days start to fly by as the CSI what happened plays out. Real estate broker finally gets appraisal from bank and studies comps used and picked by appraiser. Not like the days of the agent, real estate broker bring them to the inspection because the appraiser had not idea of the new sale on Elm Street, Green Street and Morning Glory Circle and could use these fresh horses..I mean houses to compare to in the analysis.
Now the appraiser can be isolated behind his own lime green curtain. Being a wizard as long as the property's appraises okay.